Finances. Having them in order can bring peace. Having them out of order brings stress. From a young age I was taught the value of money. I knew the difference between saving and spending. I knew that you should only spend what you have. I knew that your credit score matters. I knew that when I got to college people were going to try to throw credit cards at me and I shouldn’t fall into the trap of opening too many. I knew that my parents just wanted me to be better off than they were at my age.
As I sit here at (almost) 25, I can honestly say that my finances look pretty good. I didn’t make any of the huge mistakes that people make when they are younger, thanks to the advice from my support system growing up. I have opened lines of credit (rent, cable bills, credit cards, etc.), but I have paid all of my bills on time. I have my emergency fund. I am paying on my student loans. I have life insurance. But even though I am doing well doesn’t mean I didn’t make mistakes along the way.
When I started my job and began to get a regular paycheck, I was LIVING!!! I share this experience with a few of my friends as well. I was not worried about a budget. If it was in my account and my bills were paid, then anything was a go! As I look back now, while I wasn’t going into debt, I also wasn’t setting myself up for success. One wrong swipe, and I could have been over drafting my account. Or if something unplanned came up, like a flat tire, I might not have had the funds. After that first year I realized that budgeting HAD to become a part of my monthly planning. For example, I had to set amounts on how much I could spend eating out or I would look up and have spent $300 at restaurants while my fresh produce is now sitting in the garbage because I didn’t eat it! (Lol I know some of y’all throw away a bag of spinach/salad each week because it goes bad since you chose to pick up food on the way home instead of cooking!) Now I make each dollar have a “name!” Even if it’s just going to my savings, it still has a “name.”
My next mistake was saving aggressively without changing my spending habits. I set a goal to save my entire six months emergency fund in a year. While I did meet my goal, I racked up some debt in the process. Because even though I was saving my money, I was swiping my credit card at the same time for things I wanted. This is counterintuitive, I know, but it’s a mistake I made, and I have definitely learned my lesson! I do not like paying interest fees, so now I am aggressively paying off my credit card. This can be remedied with a budget as well. First, don’t spend on a credit card what you can’t pay off at the end of the month. Second, if you are going to put more money in your savings, that means you have less money to spend, or you have to find a way to earn that income somewhere else.
I have also learned that not keeping a tight grip on my money has allowed me to have a better relationship with money. Giving is definitely a part of my finances. I know that God has blessed me with these resources, and I am going to be a blessing by stewarding my finances well and by being a cheerful giver!
While my journey with money has not been perfect, I am grateful for the experiences because I have learned a lot. While I know some things about finances, I do not know them all! I am looking to learn more so that, ultimately, I can make my money work for me! I will keep you all updated as I do!
What is the biggest lesson you have learned in managing your finances?
Love y’all!
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